Breakdown of Electricity Prices
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report on Electricity and Natural Gas Markets in Lithuania Prepared for the European Commission Report prepared by: National Control Commission for Prices and Energy Vilnius, 2009 1/81 Annual Report on Electricity and Natural Gas Markets in Lithuania Prepared for the European Commission Table of contents 1. Foreword 6 2. Main Developments in the Gas and Electricity Markets 7 2.1. Gas Sector 7 2.1.1. Wholesale Market .................................................................................................... 7 2.1.2. Retail Market ............................................................................................................ 8 2.1.3. Infrastructure ............................................................................................................ 8 2.1.4. Regulation issues and Activity Unbundling ............................................................... 9 2.1.5. Security of Supply .................................................................................................. 10 2.2. Electricity Sector 11 2.2.1. Wholesale Market .................................................................................................. 11 2.2.2. Retail market .......................................................................................................... 12 2.2.3. Infrastructure .......................................................................................................... 14 2.2.4. Regulation / Unbundling ......................................................................................... 15 2.2.5. Security of supply ................................................................................................... 16 2.2.6. General conclusions ............................................................................................... 17 3. Regulation and Performance 18 3.1. Regulatory Issues [Article 23(1) except “h”] 18 3.1.1. Management and Allocation of Interconnection Capacity and Mechanisms to Deal with Congestion ................................................................................ 18 3.1.2. The Regulation of the Tasks of Transmission and Distribution Companies ............ 19 3.1.3. Effective unbundling ............................................................................................... 28 3.2. Competition Issues [Article 23(8) and 23(1)(h)] 31 3.2.1. Description of the wholesale market ....................................................................... 31 3.2.2. Description of the Retail Market.............................................................................. 35 3.2.3. Measures to Avoid Abuses of Dominance .............................................................. 38 4. Regulation and Performance of the Natural Gas market 41 4.1. Regulatory Issues [Article 25(1)] 41 4.1.1. Management and Allocation of Interconnection Capacity and Mechanisms to Deal with Congestion ...................................................................................... 41 4.1.2. The Regulation of the Tasks of Transmission and Distribution Companies ............ 42 4.1.3. Effective Unbundling .............................................................................................. 51 4.2. Competition Issues [Article 25(1)(h)] 53 4.2.1. Description of the Wholesale Market ...................................................................... 53 4.2.2. Description of the Retail Market.............................................................................. 55 5. Security of Supply 59 5.1. Electricity [Article 4 and 2005/89/EC Article 7] 59 5.1.1. Electricity Forecasts ............................................................................................... 61 Planned Development and Renovation of the Transmission System ...................................... 64 5.2. Gas [Article 5 and 2004/67/EC Article 5] 66 5.1.2. Natural Gas Supply Contracts ................................................................................ 66 5.1.4. Natural gas storage ................................................................................................ 69 5.1.5. Technical System Maintenance: Quality and Degree ............................................. 69 5.1.6. Technical Maintenance of the Transmission System .............................................. 70 5.1.7. Technical Maintenance of the Distribution System ................................................. 70 6. Public Service Issues [Articles 3(9) electricity and 3(6) gas] 72 6.1. Electricity Sector 72 2/81 Annual Report on Electricity and Natural Gas Markets in Lithuania Prepared for the European Commission 6.1.1. Labelling of Primary Energy Sources ..................................................................... 72 6.1.2. Implementation of the Criteria Set out in Annex A to the Directive .......................... 73 6.2. Natural Gas Sector 76 7. Report on the Pricing Structure and G Values 77 3/81 Annual Report on Electricity and Natural Gas Markets in Lithuania Prepared for the European Commission List of Tables Table 1. Natural Gas Prices Applicable to Individual Customer Groups (since 1 July 2009) ....... 8 Table 2. Declared and real degree of market opening .............................................................. 12 Table 3. Actual and forecasted prices for 2006-2009, EUR/MWh ............................................. 13 Table 4. Maximum Possible Capacity Flows with Neighbouring Countries ............................... 18 Table 5. Planning and Network Transmission Capacity Management Stages .......................... 18 Table 6. Data about Network Operators ................................................................................... 19 Table 7. Number of Electricity Suppliers by Year ...................................................................... 20 Table 8. Line Lengths by Electricity Network Companies in 2008 ............................................. 20 Table 9. Average Prices for Electricity Transportation Services in 2008 ................................... 28 Table 10. Prices for Electricity Distribution Services Provided by Companies in Separate Regions .................................................................................................................................... 28 Table 11. Volumes of Contractual Electricity Trade between Suppliers and Producers in 2008, MWh. ........................................................................................................................................ 34 Table 12. The Share of Purchased Electricity in the Market by Suppliers in 2008 ..................... 34 Table 13. Electricity Exports/Imports in 2008, million kWh ........................................................ 35 Table 14. Electricity Consumption by Sectors in 2008 .............................................................. 35 Table 15. Electricity Prices by Components in 2008, EUR/MWh .............................................. 37 Table 16. Capacities at Cross-Border Points ............................................................................ 41 Table 17. Natural Gas Transmission and Distribution System Operators ................................. 43 Table 18. Gas Transportation Price Caps in 2008 and 2009 .................................................... 46 Table 19. Average Transportation Tariffs for Different Customer Groups in 2009 ..................... 46 Table 20. Data on Unscheduled Natural Gas Interruptions by Lietuvos Dujos AB .................... 48 Table 21. Unbundling of Natural Gas Companies in 2008 ........................................................ 52 Table 22. Maximum Technical Import and Export Capacities ................................................... 53 Table 23. Natural Gas Supply Price Caps in 2008 and 2009 .................................................... 57 Table 24. Natural Gas Price Structure to Customers, EUR/MWh ............................................. 57 Table 25. Report on Complaints (Applications) Settlement by Lietuvos Dujos AB in 2008 ........ 58 Table 26. Installed/Available Capacity of Lithuanian Power Plants as of 01 01 2009, MW ........ 59 Table 27. Maximum Capacity Demand (Gross) in 2008, MW ................................................... 59 Table 28. Planned Capacity Balances of the Lithuanian Energy System at Peak Demand Times in 2009-2011, MW .................................................................................................................... 60 Table 29. Electricity Supplied to the Network by Lithuanian Power Plants in 2008 ................... 61 Table 30. Forecasts for Changes in the Installed/Available Capacities of Lithuanian Power Plants, MW ............................................................................................................................... 62 Table 31. Forecasted Maximum Capacity Demand in 2008–2012, MW .................................... 62 Table 32. Forecasted Sale and Purchase Balances in 2008-2013 ............................................ 63 Table 33. Natural Gas Import, Consumption and Forecasts until 2011 ..................................... 67 Table 34. Cap Levels of Public Tariffs of Rytų Skirstomieji Tinklai AB and VST AB, EUR/MWh 75 Table 35. Share of Customers Paying According to Public Tariffs, %................................ 75 Table 36. Components of Transmission Service Prices ............................................................ 78 Table 37. Effective Fees for the Connection of Customer Equipment to the Grid, Excluding VAT ................................................................................................................................................